Ripple Labs is reportedly looking to raise at least $1 billion to fund an XRP accumulation strategy by establishing a digital-asset treasury.
Summary
- Ripple is reportedly planning to raise at least $1 billion through a SPAC.
- The move follows Ripple’s $1 billion acquisition of GTreasury.
- XRP price failed to capitalize on the recent developments.
Sources familiar with the development have told Bloomberg that the fundraise would be executed via a special purpose acquisition company (SPAC), where Ripple will contribute a portion of 4.74 billion XRP tokens it currently holds.
For those unaware, a SPAC is a publicly traded shell company formed to raise capital in an initial public offering instead of merging with a traditional operating company to take it public. Crypto firms, including those pursuing digital asset treasuries, have time and again turned to SPACs as a way to tap into public markets more quickly and with fewer regulatory hurdles.
Ripple is yet to make an official announcement on the matter. According to the sources, details regarding the raise and the exact nature of the transaction remain under discussion and subject to change.
If the SPAC goes through, it could make the new entity the largest XRP-focused digital asset treasury and place it among a small group of companies that have shown interest in building similar treasuries. One notable name is Nasdaq-listed VivoPower, a sustainable energy solutions firm that pivoted into an XRP-focused digital asset enterprise.
Before that, Singapore-based Trident Digital Tech Holdings also signaled intentions to explore a similar path, though no formal treasury structure has emerged yet. Unlike Bitcoin and altcoins such as Ethereum and Solana, XRP has not drawn the same level of interest from digital asset treasury investors.
The latest chatter comes less than 24 hours after Ripple announced its $1 billion acquisition of GTreasury, a Chicago-based treasury management platform with clients in more than 160 countries. As previously reported by crypto.news, Ripple expects to close the deal in the coming months pending regulatory approval.
Ripple may look to bring GTreasury’s capabilities into the fold of the proposed digital asset treasury if the SPAC deal materializes. GTreasury’s suite of tools, which includes cash forecasting, liquidity management, risk oversight, and compliance, could help provide the operational backbone needed to manage a large XRP reserve in line with corporate treasury standards.
XRP price fails to rally
After hitting an intraday high of $2.46 the previous day, XRP (XRP) price has continued to fall. Although the latest rumor helped spark a short rally, by press time, the token had given up most of those gains and was down 2.5% over the past 24 hours
